Syedur Rahman, of business crime solicitors Rahman Ravelli, explains that introducing compliance procedures can be of value even after a company has come under investigation.
The trial of four former Barclays executives in relation to the bank's Qatari fundraising is ongoing.
All four deny charges of fraud by false representation, a charge which carries a maximum 10-year sentence, in relation to £322M in secret payments made to Qatar as part of its multi-billion pound bail-out of the bank during the 2008 financial crisis. And it must be remembered that the SFO failed in its attempts to reinstate criminal charges against Barclays over the fundraising.
But the allegations, whether they are eventually proven or not, paint a scenario that emphasises the value of sound compliance procedures to any business that wants to avoid legal problems. And it is never too late to introduce compliance measures – and reap the benefits – even when an investigation has been completed and charges brought.
In 2017, UK oilfield services firm Petrofac announced it was establishing a compliance and ethics board at the time it was being investigated by the SFO for fraud.
Some may say such a course of action is a case of shutting the barn door after the horse has bolted. But it may help a company that is under investigation convince the SFO – or whichever investigating agency is handling the case – that it is serious about tackling its problems. That can help convince investigators that the company is worthy of leniency.
The SFO is likely to be more lenient if it can see that a company is looking to put right the wrongs of its past. Removing senior figures associated with wrongdoing, changing working practices to avoid repeat problems and instigating staff training can all ensure that an investigating agency sees compliance measures introduced, however belatedly, as being driven by integrity rather than a desperate need to save face.
And that can affect any decision regarding whether to prosecute and any penalties imposed.
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